defination of Accounts and accounts classification

Financial transactions change the financial position of the business. By transaction sometime cash received sometime paid, sometime income earned sometime expense incurred, sometime asset increase sometime decrease, and again sometime liability increase sometime decrease. Income, Expense, Asset and Liability are not a particular type, there are different types of many such items in business organization. In a particular table/chart the income, the expense, the asset or the liability that is affected by transaction are recorded as per double entry system and it calculates the gross & net amount of that particular item. Accounts are prepared to know the continuous change and the net amount of each item. 

‘T’-Table
Account’s Title
Debit	Account’s code no……	Credit

Date	Particulars	J.F.	Taka	Date	Particulars	J.F.	Taka

‘Moving Balance’-Table

Account’s Title  Account’s code no…

Date	Particulars	J. F.	Debit  Taka	Credit  Taka	Balance
					Debit	Credit

Classification of Accounts

We can classify accounts very easily by analyzing the Accounting Equation (A=L+E)

Assets = Liabilities + Equity or Capital brought in by the owner + Assets

            = Liabilities + Income-Expense -Withdrawn by the owner 

By observing the above equation it possible to identify, that Accounts are five types.

1. Assets 2. Liabilities     3. Equity      4. Income 5. Expense